In the last several chapters, you have learned about many aspects of organizational structure, budgeting, and performance

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In the last several chapters, you have learned about many aspects of organizational structure, budgeting, and performance evaluation. None of these company characteristics operates in isolation. They all interrelate to form an organization’s culture and influence employee morale. The following table has several combinations of organizational structure and budgeting preparation style:
Organizational Structure .... Budget Creation Process
Centralized ........... Top Down
Decentralized .......... Participative
Centralized ........... Participative
Decentralized .......... Top Down

Required:
For each combination in the table, write a brief paragraph summarizing both the potential advantages and disadvantages for a company using the combination. Consider the impact on managers and other employees as well as the potential impact on outside parties such as customers or other organizational stakeholders.

Stakeholders
A person, group or organization that has interest or concern in an organization. Stakeholders can affect or be affected by the organization's actions, objectives and policies. Some examples of key stakeholders are creditors, directors, employees,...
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Managerial Accounting

ISBN: 978-0078025518

2nd edition

Authors: Stacey Whitecotton, Robert Libby, Fred Phillips

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